REG - Bradda Head Lithium - Significant Resource Expansion at Basin Project

Bradda Head LithiumAnnouncement

16/01/2023 07:00

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RNS Number : 7519M  Bradda Head Lithium Ltd  16 January 2023

16 January 2023

 

Bradda Head Lithium Ltd

("Bradda Head", "Bradda", "BHL" or the "Company")

 

Significant Resource Expansion at The Basin Project in Arizona - 22% Increase
in Contained Lithium Carbonate Equivalent Tonnes

 

 

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI, OTCQB:BHLIF), the North
America-focused lithium development group, is pleased to announce an updated
Mineral Resource Estimate ("MRE") at its Basin East ("BE") Project in Arizona,
resulting in a 22% increase in contained lithium carbonate equivalent ("LCE")
tonnes based on only 1,200m of drilling. Furthermore, the Indicated category
of the MRE, which is all located in the upper part of the deposit, has
increased by 17%.

 

 

Highlights:

·    Based on only 1,200m of majority infill and some expansion drilling
(8 out of the 14 were infill, 6 were expansion) at its Basin East (BE) claim
in Arizona, completed in2022. Bradda Head has added 65 kt of LCE to the
Mineral Resource, for an updated total LCE content of 371 kt.

·    This exploration drilling has also expanded the Upper Clay zone
within the resource by 11% to 55 Mt at an average grade of 840 ppm Li, and
revealed that mineralisation is also open to the north at BE as well as to the
west and northwest as previously identified. This has significant benefit in
identifying the next round of drilling targets for further resource expansion
potential.

·    The 2022 drilling programme has given the Company greater confidence
in the estimate at BE, and notes that Indicated content of the MRE has
increased by c.17%.

·    It's important to note that some 67% of the updated total LCE (367 kt
LCE) is in the Upper Clay which has an average grade of c.840 ppm Li, this
includes an internal High-Grade layer which has an average grade of 1,380 ppm
Li, some 5% higher than previously estimated.

·    The High-Grade and Upper Clay zones thicken to the northwest extent
of the drilled area towards Bradda's Basin East Extension (BEE) claim and
could potentially form part of a phased mining operation. This could be mined
early in the mine plan as the High-Grade zone sits in the upper part of the
deposit.

·    The previous drilled area only covered 1.1km(2) of Bradda's 41km(2)
of sedimentary claims. The 2022 infill and expansion drill programme has
increased this drilled area to 1.4km(2) of BHL's claims in this district (see
map https://www.braddaheadltd.com/media/image-library/).

·    Importantly for future resource growth, the Mineral Resource remains
open to the west, northwest north of the drilled area where BHL has the
adjacent BEE claim block and beyond into BHL's Basin North ("BN"), Basin West
("BW") and Basin West Extension ("BWE") claim blocks where geological mapping
and geophysical surveys predict similar clay strata are present.

·    An extensive 30-hole drilling programme is planned for 2023 at BEE
and BN with permits received, and drilling is planned to start in Q1 2023.
Bradda is also permitting a 80-hole programme at BWE and BW where it expects
significant resource growth stemming from geological work done to date by our
geologists. BW and BWE cover an 11km(2) area, which is considerably larger
than the BE (1.5km(2)), BEE (2.3km(2)) and BN (2.3km(2)).

 

 

Charles FitzRoy, CEO of Bradda Head, commented:

"The increase in LCE at Basin East highlights the resource growth potential at
the Basin Project. The total drilled area at Basin East covers only 1.4km(2)
of our 41km(2), which previously only covered just under 1.1km(2). That's an
increase of 65 kt of LCE over a drilled area increase of 0.3km(2). Evidence
from drilling and geophysics suggests that the higher-grade Upper Clay layer
could be relatively continuous, and we look forward to evaluating its
potential further and following it into our other claims, Basin East Extension
and Basin North, where we will be drilling this year.

 

"2023 is going to be an exciting year of resource growth for Bradda Head. With
more drilling already planned at Basin East Extension and Basin North, BHL is
excellently placed to take full advantage of the near-term resource growth
potential at our sedimentary lithium assets in Arizona. BHL is also permitting
at Basin West and West Extension with plans to drill in Q4. The area we are
permitting is over 11km(2), which is considerably larger than BE, BEE, and BN
combined (c.6km(2)).

 

"We have a compelling year ahead with what we believe are a number of material
catalysts and look forward to providing further updates in 2023. BHL is
permitting at claims adjacent to Basin North and Basin East Extension (Basin
West and Basin West Extension), and we expect to be drilling at these assets
in late 2023."

 

 

Mineral Resource

The updated Mineral Resource Estimate ("MRE") at BE, which has been reported
by SRK Consulting (UK) Ltd ("SRK") in accordance with the terminology and
definitions given in the JORC Code (2012), comprises: an Indicated Mineral
Resource of 21.2 Mt at an average grade of 891 ppm Li and 3.5% K for a total
of 100 kt LCE and an Inferred Mineral Resource of 73.3 Mt at an average grade
of 694 ppm Li and 3.2% K (potassium) for a total of 271 kt LCE. The statement,
presented in Table 1, was prepared by Mr. Martin Pittuck of SRK, who is
considered a Competent Person for this style of mineralisation.

 

SRK has applied basic technical and economic assumptions for open pit mining
(mining and selling costs, mining recovery and dilution, pit slope angles) and
processing factors (Li recovery, processing costs), to determine which portion
of the block model has reasonable prospects for eventual economic extraction
as required by the JORC Code. To achieve this, the Mineral Resource has been
subject to a pit optimisation study and cut-off grade analysis.

 

The 2022 Q4 Mineral Resource follows the completion of a 14 hole 1,177m sonic
drilling programme which was completed in Q2 2022.

 

The drilling coverage at BE has increased by c.25% in area since the Q1 2022
MRE (see RNS as of 29 March), allowing expansion of the Mineral Resource
towards the southwest and east. Furthermore, infill drilling has resulted in
improved confidence in grade and tonnage estimates yielding a 17% increase in
LCE tonnes in the Indicated category, as well as providing some deeper
intersections to add some previously missed Lower Clay.  In addition to the
overall 22% increase in contained LCE tonnes in the Mineral Resource, the 2022
drilling has improved the geological interpretation in the eastern part of the
license, where mineralisation is now shown to be open to the north, consistent
with other parts of the deposit.

 

 

2022 Mineral Resource Statement

 

Table 1:  Mineral Resource Statement for Basin East, effective 13 October
2022.

 Classification  Domain         Tonnes  Mean Grade        Contained Metal
                 Mt                     Li (ppm)  K (%)   LCE (kt)  K (Mt)
 Indicated       Upper Clay     16.0    738       3.6     63        0.6
                 Upper Clay HG  5.2     1,354     3.0     38        0.2
                 Lower Clay     -       -         -       -         -
                 SubTotal       21.2    891       3.5     100       0.7
 Inferred        Upper Clay     31.7    767       3.6     129       1.2
                 Upper Clay HG  2.3     1,448     3.5     18        0.1
                 Lower Clay     39.3    592       2.9     124       1.1
                 SubTotal       73.3    694       3.2     271       2.4
 Total                          94.5    738       3.3     371       3.1

 ·      Mineral Resource statement has an effective date of 13 October
 2022.

 ·      A Mineral Resource is reported using a cut-off grade of
 300 ppm Li and constraining the model to an optimised open pit shell, which
 was generated using the following assumptions: lithium carbonate metal prices
 of 18,000 USD/t(LCE); State of Arizona royalty (selling cost) of 6%;
 operating costs of 5,000 USD/ t(LCE) or 27 USD/ t(ore); Li recovery of 75%;
 mining dilution and recovery of 5% and 95%; and pit slope angle of 45°.

 ·      Tonnages are reported in metric units.

 ·      Rounding as required by reporting guidelines may result in
 apparent summation differences between tonnes, grade and contained metal
 content.

 ·      Conversion factor of Li metal to lithium carbonate equivalent
 (LCE) = 5.323

 

 

High Grade

The updated MRE total of 371 kt LCE includes 55 kt of LCE in a High-Grade
zone within the Upper Clay zone with an average grade of some 1,380 ppm Li.
This High-Grade zone gives Bradda Head further optionality and could have
important economic implications for a potential future mining operation. The
shallow nature of the High-Grade zone would likely result in a low strip
ratio, enabling High-Grade ore to be scheduled early in a possible mine plan
as it sits in the upper part of the deposit.

 

 

Exploration Potential

In the MRE model, the Upper Clay zone and Higher-Grade zone are thickest at
the northwestern edge, and they remain open to the west and northwest and are
expected to continue under cover in the adjacent BEE claim. Geological mapping
and geophysical surveys indicate similar clay layers are present in Bradda
Head's other claims beyond BEE in BW and BN. As such, with further drilling we
see excellent potential to increase the resource base substantially.

 

An Exploration Target for the Basin Project of between 300 to 1,300 Mt of
material grading between 600 to 850 ppm Li, equivalent to between 1 and
6 Mt LCE, has been identified covering the claims BN, BE, BEE and BW and
BWE. This is based on an assessment of the updated Mineral Resource LCE per
unit area, an estimated range of likely grades based on the MRE and an
assessment of the extent of mapped clay and hangingwall lithologies in the
undrilled parts of the Basin Project licence areas. See map
(https://www.braddaheadltd.com/media).

 

 

Next Drilling Steps

BHL's drilling area at BE covers only 1.4km(2) of our 41km(2) of sedimentary
lithium claims in Arizona comprising the Basin and Wikieup Projects. The plan
at Basin in 2023 is to increase coverage to over as much of our 41.1km(2) as
possible and BHL anticipates further resource growth in 2023.

 

The Company has obtained drilling permits for 120 holes at BEE, of which it
expects to drill 20 holes in early 2023. The Company also has permission to
drill 10 holes at its BN Claim, and anticipate that drilling will commence in
early 2023.The difference in the scale of the programmes is that BEE is a
state lease, whereas BN is a Bureau of Land Management (BLM) claim (see map
for all Basin Project claims/leases at https://www.braddaheadltd.com/media
(https://www.braddaheadltd.com/media) ). BEE is adjacent to BE, and BN joins
with BEE's northern border.

 

Bradda Head is in the process of permitting exploratory drilling at its BW and
BWE claims.

 

 

Related Tables

The following table is for information and context, comparing Q4 2022, Q1 2022
and 2018 totals in relation to the areas on which work had been conducted at
each time.

 

Comparison of updated Q4 2022 MRE to Q1 2022 MRE to 2018 MRE:

 

              LCE (kt)  Resource area (km(2))  % of resource area over total 41km(2)  Drilled area (km(2))  % of drilled area over total 41km(2)
 2018 MRE     185       0.58                   1.4                                    0.9                   2.2
 Q1 2022 MRE  305 1     0.94                   2.3                                    1.1                   2.7
 Q4 2022 MRE  371       1.24                   3.0                                    1.4                   3.4

 

 

The following table is for information and context, it demonstrates the
changes in grade and contained LCE that occur when sensitised to higher
cut-off grade scenarios.

 

2022 Q4 MRE model sensitivity of LCE to cut-off grade:

 

Table 2: Mineral Resource sensitivity* to cut-off grade

 Li cut-off grade (ppm)  Average Li grade above cut-off (ppm)  Contained metal above cut-off

                                                               LCE (kt)
 400                     748                                   367
 550                     795                                   330
 700                     914                                   222
 850                     1,123                                 115
 1,000                   1,303                                 72
 *This table does not constitute a Mineral Resource, as defined by the JORC
 Code, but is an expression of the sensitivity of the average grade and
 contained tonnage of LCE to a selection of different Li cut-off grades.

  1  National Instrument 43-101 compliant technical report filed for the Basin
 Project in November 2022

 

 

Royalty Payments

Bradda is targeting to grow its resources at its Basin project this year with
the upcoming drill programmes at BEE and BN. Bradda has two royalty payments
due from expanding its resources at its clay claims (see PR dated 22 December
2021). The next payment of US$2.5 million is paid on Bradda expanding its
resource base to 1 Mt LCE (Lithium Carbonate Equivalent), and then the third
payment of US$3 million is achieved when Bradda expands its resource base to
2.5 Mt LCE. Bradda is working with its geologists to hit these targets as soon
as is feasible with the programmes mentioned above and the planned programmes
in at Basin West and Basin West Extension.

 

For further information please visit the Company's website:
www.braddaheadltd.com (http://www.braddaheadltd.com)

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014, as it forms part
of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.
Upon the publication of this announcement, this inside information is now
considered to be in the public domain.

 

 

Competent Person SRK

The Mineral Resource statement has been authored by Mr. Martin Pittuck, CEng,
MIMMM, FGS who works for SRK Consulting (UK) Ltd, an independent mining
consultancy. Mr. Pittuck has over 25 years' experience undertaking and
reviewing Mineral Resource Estimates and has worked on lithium clay estimates
for over 5 years. Mr. Pittuck consents to the inclusion of the technical
information in this release and context in which it appears.

 

 

Qualified Person (BHL)

Joey Wilkins, B.Sc., P.Geo., is Head of North America at BHL and the Qualified
Person who reviewed and approved the technical disclosures in this news
release. Mr. Wilkins is a graduate of the University of Arizona with a B.Sc.
in Geology with more than 37 years of experience in mineral exploration and is
a qualified person under the AIM Rules. Mr. Wilkins consents to the inclusion
of the technical information in this release and context in which it appears.

 

Reference is made to the report entitled "Independent Technical Report On The
Basin And Wikieup Lithium Clay Projects, Arizona, USA" (the Report) dated
October 18 2022 with an effective date of June 10 2022. The Report was
prepared by Martin Pittuck, CEng, MIMMM, FGS, and Kirsty Reynolds MSci, PhD,
FGS and reviewed by Nick Fox MSc, ACA, MIMMM. The Report is available for
review on SEDAR (www.sedar.com).

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET
ABUSE REGULATION (EU No. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF
THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE
INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS
SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION.

 

ENDS

 

 

Contact:

 Bradda Head Lithium Limited        +44 (0) 1624 639 396
 Charlie FitzRoy, CEO

 Denham Eke, Finance Director

 Beaumont Cornish (Nomad)           +44 20 7220 1666

 James Biddle/Roland Cornish

 Peterhouse (Joint Broker)          +44 207 469 0930
 Charles Goodfellow

 Duncan Vasey

 Lucy Williams

 Shard Capital (Joint Broker)       +44 207 186 9927
 Damon Heath

 Isabella Pierre

 Red Cloud (North American Broker)  +1 416 803 3562
 Joe Fars

 Tavistock (PR)                     + 44 20 7920 3150
 Nick Elwes                         braddahead@tavistock.co.uk

 Adam Baynes

 

 

About Bradda Head Lithium Ltd.

Bradda Head Lithium Ltd. is a North America-focused lithium development group.
The Company currently has interests in a variety of projects, the most
advanced of which are in Central and Western Arizona: The Basin Project (Basin
East Project, and the Basin West Project) and the Wikieup Project.

The Basin East Project has an Indicated Mineral Resource of 21.2 Mt at an
average grade of 891 ppm Li and 3.5% K for a total of 100 kt LCE and an
Inferred Mineral Resource of 73.3 Mt at an average grade of 694 ppm Li and
3.2% K for a total of 271 kt LCE. In the rest of the Basin Project SRK has
estimated an Exploration Target of between 300 to 1,300 Mt of material
grading between 600 to 850 ppm Li which is equivalent to a range of between
1 to 6 Mt LCE. The Group intends to continue to develop its three phase one
projects in Arizona, whilst endeavouring to unlock value at its other
prospective pegmatite and brine assets in Arizona, Nevada, and Pennsylvania.
All of Bradda Head's licences are held on a 100% equity basis and are in close
proximity to the required infrastructure. Bradda Head is quoted on the AIM of
the London Stock Exchange with the ticker of BHL, on the TSX Ventures exchange
with a ticker of BHLI, and on the US OTCQB market with a ticker of BHLIF.

 

 

 

Technical Glossary

 

 kt                          Thousand tonnes
 ppm                         Parts per million
 Exploration Target          An estimate of the exploration potential of a mineral deposit in a defined

                           geological setting where the statement or estimate, quoted as a range of
                             tonnes and a range of grade (or quality), relates to mineralisation for which
                             there has been insufficient exploration to estimate a Mineral Resource.
 Inferred Mineral Resource   That part of a Mineral Resource for which quantity and grade (or quality) are

                           estimated on the basis of limited geological evidence and sampling. Geological
                             evidence is sufficient to imply but not verify geological grade (or quality)
                             continuity. It is based on exploration, sampling and testing information
                             gathered through appropriate techniques from locations such as outcrops,
                             trenches, pits, workings and drill holes.  An Inferred Mineral Resource has a
                             lower level of confidence than that applying to an Indicated Mineral Resource
                             and must not be converted to an Ore Reserve.  It is reasonably expected that
                             the majority of Inferred Mineral Resources could be upgraded to Indicated
                             Mineral Resources with continued exploration.
 Indicated Mineral Resource  That part of a Mineral Resource for which quantity, grade (or quality),

                           densities, shape and physical characteristics are estimated with sufficient
                             confidence to allow the application of Modifying Factors in sufficient detail
                             to support mine planning and evaluation of the economic viability of the
                             deposit.  Geological evidence is derived from adequately detailed and
                             reliable exploration, sampling and testing gathered through appropriate
                             techniques from locations such as outcrops, trenches, pits, workings and drill
                             holes, and is sufficient to assume geological and grade (or quality)
                             continuity between points of observation where data and samples are gathered.

 

 

Forward-Looking Statements

Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. This News Release
includes certain "forward-looking statements" which are not comprised of
historical facts.  Forward-looking statements include estimates and
statements that describe the Company's future plans, objectives or goals,
including words to the effect that the Company or management expects a stated
condition or result to occur. Forward-looking statements may be identified by
such terms as "believes", "anticipates", "expects", "estimates", "may",
"could", "would", "will", or "plan". Since forward-looking statements are
based on assumptions and address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Although these
statements are based on information currently available to the Company, the
Company provides no assurance that actual results will meet management's
expectations.  Risks, uncertainties and other factors involved with
forward-looking information could cause actual events, results, performance,
prospects and opportunities to differ materially from those expressed or
implied by such forward-looking information. Forward looking information in
this news release includes, but is not limited to, following:  The Company's
objectives, goals or future plans. Factors that could cause actual results to
differ materially from such forward-looking information include, but are not
limited to: failure to identify mineral resources; failure to convert
estimated mineral resources to reserves; delays in obtaining or failures to
obtain required regulatory, governmental, environmental or other project
approvals; political risks; future operating and capital costs, timelines,
permit timelines, the market and future price of and demand for lithium, and
the ongoing ability to work cooperatively with stakeholders, including the
local levels of government; uncertainties relating to the availability and
costs of financing needed in the future; changes in equity markets, inflation,
changes in exchange rates, fluctuations in commodity prices; delays in the
development of projects, capital and operating costs varying significantly
from estimates; an inability to predict and counteract the effects of COVID-19
on the business of the Company, including but not limited to the effects of
COVID-19 on the price of commodities, capital market conditions, restriction
on labour and international travel and supply chains; and the other risks
involved in the mineral exploration and development industry, and those risks
set out in the Company's public documents filed on SEDAR. Although the Company
believes that the assumptions and factors used in preparing the
forward-looking information in this news release are reasonable, undue
reliance should not be placed on such information, which only applies as of
the date of this news release, and no assurance can be given that such events
will occur in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise, other than
as required by law.

 

(#_ftnref1)

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